Bulls are happy campers at the moment - cause we got a contra trend rally and there might be another minor gap up. Yesterday was actually a WEAK rally - cause of the very low volume , which is declining on this rally since 1250 , which is NOT bullish , but BEARISH.
This is a clear CONTRA TREND rally as I have been stated that we would get in this bigger decline - I did not think we would just go down , but get lots of contra trend rallies and here we got them.
Overall we are near testing lots of moving averages right above 1300.
1300 is a more psychology resistance level - we have MA(50) at 1303 , we have a trendline from a downtrend channel at 1300, we have MA(20) at 1304 so lots of technical resistance - but if the smart guys are really going to SUCK those bulls in - they know these and are probably going to sqwuuize us to 1310-1315 trendline which is a trendline from the TOP in February , but that is ONLY if we break above those lines.
Overall what IS comming is a SHARP SHARP decline - and if my target is still holding we should see below 1200 BEFORE end of month.
Looking on the Dow Jones chart - we might have a backtest of broken support + test of trendline from highs (perfect spot imho) thats around 12.140 or so.....
Well thats 100 points drop from here but I have still 8 days to make this come true and I think when the next selling begins , watch out to downside , cause we could easy drop 30-40 handles in SPX a day.
But only cause everyone is buying the dip - all the retailers bought this too and will (again) be screwed and then plunge us down , what will come to make the big plunge I dont know... but we bounced from a big trendline since march 2009 lows in dow jones and got a sharp little rally but the volume is declining and we are testing big moving averages here soon.
So I am expecting for now that the contra trend rally is over or the very last push up might come before a plunge rest of week and probably next, so be prepared.....cause I think this move to downside will be the worst we have seen over last 1 month.
Have a nice day still short big 1333-1330 and holding , about to get a buy signal - but needs confirmation.
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